REPORT TO COUNCIL
SUBJECT
Title
Action on Monthly Investment Report for June 2020 and Approve FY 2020/21 Budget Amendments [Council Pillar: Enhance Community Engagement and Transparency]
Report
BACKGROUND
In compliance with the Charter of the City of Santa Clara and the adopted Investment Policy, the June 2020 investment report and FY 2020/21 budget amendments are submitted for your information.
Staff is currently working on the final reconciliation of the City’s finances for the fiscal year ended June 30, 2020 and will bring forward the budgetary year-end report after that analysis is completed. This year-end analysis will include the impacts associated with COVID-19 on both the City’s revenue collections and expenditures.
In accordance with City Council Policy 051 - Donations to the City, included in this report is a monthly activity and annual summary of donations received by department. Although the requirement of the policy is to report quarterly, in its ongoing effort to streamline reporting, the City will include this information monthly in the financial status report.
DISCUSSION
Monthly Investment Report (Attachment 1)
All securities held by the City of Santa Clara as of June 30, 2020 were in compliance with the City’s Investment Policy Statement regarding current market strategy and long-term goals and objectives. All securities held are rated “A” or higher by two nationally recognized rating agencies. There is adequate cash flow and maturity of investments to meet the City’s needs for the next six months.
The City’s investment strategy for June 2020 was to invest funds not required to meet current obligations, in securities listed in the prevailing Investment Policy Statement, with maturities not to exceed five years form the date of purchase. This strategy ensures safety of the City’s funds, provides liquidity to meet the City’s cash needs, and earns a reasonable portfolio return of 1.70%.
Donations to the City
In June 2020, the City received donations totaled $1,205, bringing the FY 2019/20 donation amount to $265,314 as shown in the table below.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
Approval of the FY 2020/21 Budget Amendments included in Attachment 2 is recommended in this report. From time to time, adjustments to the budget are required to reflect new information, align budgets with actual revenues and expenses, and correct for inadvertent errors. As detailed in Attachment 2, in the General Fund, the City is recognizing donations on behalf of the Fire Fighter’s Foundation for the Small Business Assistance Program. Recommended actions also include carrying over funding from FY 2019/20 to FY 2020/21 in the Community Development and Human Resources Departments and Non-Departmental for items originally anticipated to be fully expended in FY 2019/20. In the Convention Center Enterprise Fund, actions are recommended to appropriate funding pertaining to the release of Aramark funds to the City for operational expenses at the Convention Center.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Note and file the Monthly Investment Report for June 2020 as presented and Approve FY 2020/21 Budget Amendments.
Staff
Reviewed by: Kenn Lee, Director of Finance
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Monthly Investment Report June 2020
2. FY 2020/21 Budget Amendments